AR Best Practices

*Company Name:

*Principal Contact :

*City: *State: AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

*Phone: Fax:

Web Address:

*Email:

Optional: Further customize your Quote...

1. Annual Trade Credit sales volume $

2. Days Sales Outstanding # days (ex. current terms 30 days but most pay in 50 days)

3. Current Costs of Capital % (ex. 12% Bank Interest Rate to finance A/R)

4. Total Credit Administration $ annual costs
(ex: estimate your annual expenses for performing the following task)

• Credit Check Fees
• Account Reconciliation
• Payment Processing
• Deposits
• Collections

5. Are you eligible for Early Payment Discounts from your vendors? [Select] Yes No
5 (a). If yes, then list Discount % and purchase volume eligible for discount %
(ex. 2% Net 10 and 20% purchases eligible for discount)

6. Bad Debt % of total sales % (ex. estimate or see financial statements)

7. Increase sales lift by extending longer payment terms %
(ex. increase new and existing sales potential by 5%)

8. Gross Margin % on sales increase %
(ex. 35% gross profit from the sales increase, not the top line sales revenue increase)

9. Current Trade Credit Terms (ex. enter 10, 15, 30, 60, 90 days)

10. Desired Trade Credit Terms (ex. enter 60, 90 days)

11. How do you finance your trade credit A/R currently?

12. Do you accept business, corporate and government purchasing cards? [Select] Yes No

13. Do you currently qualify for Level 3 MasterCard and Visa Interchange? Select Yes No

14. Would you like a bundled Trade Credit & Level 3 payment processing quote? [Select] Yes No

15. Who is processing your credit cards?

16. Rank by Importance these Points of Interest (1 = most important)

1 2 3 4 5 6   -Increase cash flow with payment advances 2-4 days
1 2 3 4 5 6   -Reduce personal risk
1 2 3 4 5 6   -Increase business line of credit
1 2 3 4 5 6   -Reduce A/R administration expenses
1 2 3 4 5 6   -Outsource underwriting and risk monitoring
1 2 3 4 5 6   -Extend longer trade credit terms to increase sales